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A finance department audit has exposed financial irregularities amounting to Rs 2,313 crore across three Noida industrial development agencies between 2012 and 2016. Notable discrepancies include inflated floor area ratios to housing developers, leading to a Rs 1,100 crore loss for the Greater Noida Authority, and questionable financial practices by the Noida Authority. Noida CEO Lokesh M indicates their internal report might offer a contrasting view. Further discussions are slated for August 22.
A finance department audit has unveiled fiscal discrepancies amounting to Rs 2,313 crore across three industrial development agencies in Noida, during the period of 2012 to 2016.
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The auditing process, executed between 2018 and 2019 by the local fund audit department, Prayagraj, shed light on over 80 discrepancies. These included incomplete land procurement, surging infrastructure project costs, and inconsistencies in governmental school construction and renovations. This resulted in a staggering loss of Rs 1,190 crore to the Greater Noida Authority, Rs 863 crore to the Noida Authority, and a further Rs 261 crore to the Yamuna Authority.
A significant revelation from the audit report indicates that the Greater Noida Industrial Development Authority (GNIDA) granted an unduly high floor area ratio (FAR) to group housing developers without levying additional charges. This measure alone strained the Authority's coffers by about Rs 1,100 crore. The FAR, a metric comparing a building's total floor area with its plot size, was increased for group housing developers from 1.75 to 2.75. This spike was permitted without extra charges in the 2008 and 2010 schemes, causing an additional Rs 15 crore loss.
Further, the Noida Authority, already under the Supreme Court's scrutiny, exhibited fiscal lapses of Rs 863 crore. These stemmed from misjudged development fees, land allocations, and projects that seemed to disproportionately favour builders. The report also accused the Noida Authority of unsanctioned payments, lackadaisical rent collection, and unnecessary infrastructure investments. Specific infractions included a Rs 43-crore "unwarranted" underpass, unutilized drainage construction due to incomplete land procurement, and payments made without government approval.
Moreover, the audit shed light on dubious practices where firms were compensated without completing any work post-tender issuance, and unapproved payments made for contractual labour. The audit also spotlighted a Rs 64.5 crore loss incurred by the Yamuna Expressway Industrial Development Authority (YEIDA) due to interest losses on unused funds.
In conclusion, The audit report has ignited concerns over the management of public funds by the Noida authorities. As they prepare their counter-narrative, the transparency and accountability of these institutions come under public scrutiny. Only time will reveal the depth of these financial discrepancies and the path to rectification.
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